Plexus Law, instructing Adam Tolley QC, successfully acted for Capita in an appeal against the first instance / decision of Mr Justice Popplewell,  EWHC 3977 (Comm). In a judgment handed down on 21 December 2015, the Court of Appeal held by a majority that pension consultants did not owe a continuing duty to correct previous acts of negligence in relation to ineffective revisions to a pension scheme.
In a decision likely to be of general interest to professional negligence practitioners, Lord Justice Longmore and Mr Justice Henderson held that the decision of the Court of Appeal in Bell v Peter Browne & Co  2 QB 495 was to be followed in preference to the decision of the High Court in Midland Bank Trust Co v Hett Stubbs & Kemp  Ch 384. The Court ruled that the obtaining and receiving of advice after a negligent mistake has been made does not give rise to an obligation to correct the mistake or to a fresh cause of action every day after the mistake has been made.
As a result, under a contractual indemnity in a share purchase agreement, Capita will be entitled to recover from RFIB Group a larger proportion of a settlement of a professional negligence claim.